Market-oriented business model for SMEs' disruptive innovations internationalization

Abstract

PurposeThe aim of this study is to develop and evaluate a market-oriented business model (MOBM) and analyze how it contributes to internationalization of SMEs' disruptive innovation.Design/methodology/approachBased on market orientation literature, an MOBM is developed and assessed through collaboration among companies, researchers and networking partners. For the evaluation of the model, qualitative data was collected through workshops, interviews and participatory observations at four case SMEs. Methodologically, the implementation of the MOBM consists of a systematic knowledge development process by following four work packages to support the companies' market-oriented internationalization.FindingsThe results show that SMEs face internal barriers to developing innovativeness that hinder them from creating effective disruptive innovation for the international buyer chain. The study finds that SMEs need to work with an MOBM for developing market intelligence within the organization and seek external support for entering the international market.Practical implicationsThe methodological strength allows application, evaluation and modification of the MOBM in close collaboration with the SMEs that directly benefit from its implementation. Modifying the principles of market orientation by practical application, SMEs can apply the MOBM to analyze their internationalization capacity for high-tech disruptive innovations.Originality/valueThis article contributes to new thinking by introducing market orientation to SMEs' internationalization of disruptive innovation. The study highlights the less researched field of disruptive innovation by developing the MOBM to deal with SMEs' internationalization.

The Potential Of Internationalization Of Small And Medium Micro Enterprises In SAWO Leather Crafts, Magetan District, East Java, Indonesia

“…[22] Then Agneta's research found that SMEs face internal obstacles to develop effective constructive innovations for international buyers. [29] V. CONCLUSION Based on the description of the research findings and discussion above, that the Magetan leather handicraft business has many problems if it is forced to internationalize between administrative problems, global marketing channels, and the resources it has. Potentially Magetan leather handicraft products have enormous potential to be able to penetrate the international market because they have a quality that is not inferior to foreign production.…”

“…This study finds that SMEs need to work with MOBM to develop market intelligence within the organization and seek external support to enter international markets. [29] Research conducted by Amir Zakery, Mohammad SadeghSaremi found that the results of content analysis for configuration, technological knowledge, and market knowledge were mainly obtained through direct experience and representative learning; However, internationalized knowledge is not as well established as the third major knowledge area to integrate technology with market knowledge in line with the corporate strategy of an internationalized company. For the measurement of knowledge assets of internationalized companies as a prerequisite for continuous improvement, several indices of intellectual capital were extracted, including human, structural and relational capital.…”

Relationship Between Knowledge Base and Innovation-Driven Growth: Moderated by Organizational Character

“…First, it may create more resource combinations and product mixtures, which may help firms to better meet the diversified demands in turbulent markets ( Rosca et al, 2017 ; Snihur and Wiklund, 2019 ). Second, business model innovation may change the manufacturing process, commercial channel, and value proposition of a firm, which may lead to a high efficiency and a strong capability to add value ( Yi et al, 2020 ; Sun et al, 2021 ; Sundstrom et al, 2021 ).…”

The Effect of Small Business Innovation and the Role of Government on the Environment: Evidence From Indonesia

“…There is quite a lot of research that mentions small business barriers. SMEs face internal obstacles in developing innovations that can solve their problems (Sundstr€om et al, 2020). This also happens to small businesses in Indonesia.…”

“…It must also adjust the company's goals to consumer needs or customer orientation innovation need ("COIN"). Every business person needs to make innovation that is consumer-oriented (Bhatnagar and Gopalaswamy, 2017;Sundstr€om et al, 2020). Business people who can adapt their products to COIN will continue to exist and be needed by consumers.…”